$2.52M raised ahead of its 2023 drill programs
Our rare earths Investment Lanthanein Resources (ASX: LNR) just completed a capital raise strengthening its balance sheet ahead of drill programs at both of its rare earths projects.
LNR raised a total of $2.52M at 1.8c per share.
The capital raise adds to LNR’s already strong cash position of $3.67M at 31 December 2022 which means the company should have ~$6.2M in cash on hand.
The placement also came with 1 free attaching option for every two placement shares issued, exercisable at 3c per share, expiring 31 December 2024.
The placement will see LNR issue:
- 140,000,000 LNR shares (to be issued on the 10th of February 2023)
- 70,000,000 listed options.
We especially like that LNR has managed to lock away a capital raise well in advance of its drill programs.
Typically we see junior explorers wait until their cash balances are low before doing a raise, the problem with this is that most investors get a sense of a capital raise being needed which means the company is more of a price taker when it comes time to raise.
By getting ahead of this problem LNR can now focus on exploration instead of having to raise capital closer to a drill program AND if the company does successfully make a new large scale discovery investors will have to step up and buy LNR shares on market.
What’s next for LNR?
LNR is now well capitalised going into its first drill program for the year at its South Australian ionic clay hosted rare earths project. LNR expects to be drilling here before the end of this quarter.
The company will then move to drilling its large carbonatite targets at its rare earths project in the Gascoyne region - next door to Hastings Technology Metals ($446M) and Dreadnought Resources ($340M).
We are also waiting on some more of the assay results from the company’s last round of drilling, as of the latest quarterly update LNR confirmed that ~70% of results had been received to date.
